One said on anonymously: “The search for a new CEO has begun and telecom companies may look at CXOs from industries such as consumer and technology (field).
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MintAt the time of publication, queries sent to VI via email have not been answered yet.
A new CEO will join Vodafone’s idea (VI) as Indian wireless carriers have begun to surpass 4G and 5G services. Reliance Jio Infocomm Ltd and Bharti Airtel Ltd recently signed an agreement with Elon Musk’s SpaceX to provide Starlink Satellite Internet services to customers in India. In response to clarification sought about its negotiations with Starlink coverage, VI said the company is in exploratory negotiations with various SATCOM providers, including Starlink. ”
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VI adopts high-speed 5G VI due to its debt burden when the government agrees to convert additional ₹Last week, statutory dues worth Rs 3695 crore increased its stake to 49% of the company.
Compared with 40.4% and 33.5% of Jio and Airtel, the subscriber market share of telecom operators is 18% in the merger between Vodafone India and Idea Cellular Ltd.
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VI has been worried about the survival of its competitors and the fierce competition for the past two years. As of the end of December 2024, the company’s subscriber base was 198 million, compared with Jio’s 482.1 million and Airtel’s 414 million.
To strengthen the fortress, the company will need to meet the needs of its young customer base and can even increase its average revenue (ARPU) (ARPU), which is ₹According to another industry executive, 173 was aware of the development as of the October-December quarter. Airtel’s Arpu Station ₹245 and Jio report ₹203 During this period.
Moondra helps sew the Vodafone-Idea merger
Moondra, chief financial officer (CFO) at erstwhile Idea Cellular from June 2008 to August 2018, played a cruel role in stitching the Vodafone-Idea merger in 2018. The deal took place during one of the most turbulent periods for India’s telecom sector when Mukesh Ambani-led Jio rolled out unlimited 4G plans and slashed data rates, forcing Airtel and other history to follow suit.
Moondra was promoted to VI CEO for three years in August 2022, which will end this August.
During his tenure as Chief Financial Officer and CEO, Moondra promised a key ₹In 2019, the 25,000 crore rupees rights issue was designed to raise funds to reduce the company’s debt and strengthen its balance sheet, which is due to competition and financial challenges arising from the merger. During this period, the government first converted ₹Vodafone’s outstanding membership fee of 100 billion euros was integrated into fairness.
In April 2024, VI rose ₹So far, Rs 180,000 crore has been made through India’s largest follow-up public offer. Last week, the company announced a second equity conversion of value ₹369.5 million shares increased the government’s shares to 49%.
Responding to the news, operators’ shares rose 18.9% on Tuesday ₹8.10 each.
Broker Jefferies said in a report Tuesday that the debt-to-equity conversion would provide some funding relief for Vodafone’s idea. It said this could support the company’s online investment and slow down market share, turning to Bharti Airtel and Reliance Jio.
However, Ambit Capital analysts said the company will need to continue tariffs to maintain capital expenditures and make good future scope and payments connected to AGR.
The biggest financial pressure for operators is due to adjusted gross income (AGR) issues. In 2019, the Supreme Court ruled that VI and its peers were required to pay statutory liabilities to AGR, including non-tax revenue. There is a huge gap between the calculations of the telecommunications department and the membership fees that the telecom operators self-assess. Regarding Vodafone’s idea, the Ministry of Telecommunications (DOT) calculated the total membership fee ₹Estimates of 580 million companies ₹2.15 billion.
In September 2024, the Supreme Court rejected a treatment petition seeking relief from VI and other operators in Apex Court’s 2019 ruling.
As of December 2024, Vodafone’s total debt has existed ₹2.3 trillion, including ₹77,000 million AGR responsibilities and ₹1.4 trillion spectral responsibility. The conversion value of additional liabilities ₹Jefferies said 3.7 billion will help reduce the company’s debt by 17%.
